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HomeMy WebLinkAboutRDA 2 PROSPECT VILLAGE 05-17-04 AGENDA REPORT Agenda Item RDA 2, Reviewed: ~ C~y Manager Finance Director '/ MEETING DATE: MAY 17, 2004 TO: WILLIAM A. HUSTON, EXECUTIVE DIRECTOR FROM: COMMUNITY DEVELOPMENT DEPARTMENT STAFF AND REDEVELOPMENT AGENCY STAFF SUBJECT: JOINT PUBLIC HEARING OF THE TUSTIN CITY COUNCIL AND TUSTIN COMMUNITY REDEVELOPMENT AGENCY REGARDING IMPLEMENTION ACTIONS AND ENTITLEMENTS FOR THE PROSPECT VILLAGE PROJECT LOCATED IN OLD TOWN TUSTIN IN THE TOWN CENTER REDEVLOPMENT AREA PROJECT SUMMARY The City Council and Community Redevelopment Agency (the "Agency") are being requested to conduct a joint public hearing to consider the Prospect Village Project (the "Project"), which includes the demolition of existing buildings and construction of a 9,300 square foot commercial building and twelve (12) live/work units at the northwest corner of Main Street and Prospect Avenue (the "Site") (Attachment A - Location Map). The Citv Council is being asked to adopt the resolutions approving a General Plan Conformity Finding for disposition of the site, Zone Change 03-002, Tentative Tract Map 16481, Design Review 03-012, Conditional Use Permit 03-012, and the sale of property acquired by the Agency using tax increment funds. The Redevelopment Aqencv is being asked to adopt the resolution approving the Disposition and Development Agreement (DDA) with Prospect Village LP. All actions requested are considered part of the Project. To approve the project, the City Council would need to take action to certify the Final Environmental Impact Report (FEIR) and adopt Findings of Fact, Statement of Overriding Considerations, and Mitigation Monitoring Program. RECOMMEDATION 1. Staff recommends that the City Council and Agency take the following actions: a) Hear staff reports from Community Development and Redevelopment Agency staff. b) Open and conduct a joint public hearing on the proposed Prospect Village Project. Joint City Council and Community Redevelopment Agency Report Joint Public Hearing Prospect Village Project & DDA May 17, 2004 Page 2 c) 2. 3. Close the public hearing and ask staff to prepare responses to questions and issues. d) Discuss and take actions (City Council first). That the City Council take the following actions: a) Adopt Resolution No. 04-45 certifying the Prospect Village Project Final Environmental Impact Report as complete and adequate pursuant to the California Environmental Quality Act and adopting Findings of Fact, a Statement of Overriding Considerations, and a Mitigation Monitoring Program for the Project. b) Adopt Resolution No. 04-46 determining that location, purpose, and extent of the proposed DDA for disposition of property at the northwest corner of Main Street and Prospect Avenue conforms with the Tustin General Plan. c) Introduce Ordinance No. 1284 adopting Zone Change 03-002 to change the zoning on the Site from Central Commercial and Parking Overlay (C2- P) to Planned Community (P-C) and establish Planned Community District Regulations and set for second reading at its regular meeting on June 7, 2004. d) Adopt Resolution No. 04-47 approving Tentative Tract Map 16481 to subdivide the Site into thirteen (13) numbered lots and one (1) lettered lot for the purpose of developing a commercial building and twelve (12) live- work units within a planned unit development. e) Adopt Resolution No. 04-48 approving Design Review 03-012 for development of the Site. f) Adopt Resolution No. 04-49 approving Conditional Use Permit 03-012 for establishment of a future restaurant with alcoholic beverage sales in a tenant space up to 3,000 square feet with 112 seats in the commercial building on Lot 1 ofTentative Tract Map 16481. g) Adopt Resolution No. 04-41 approving the sale of Agency-owned property located at 191 and 193-195 East Main Street. That the Redevelopment Agency take the following actions: Joint City Council and Community Redevelopment Agency Report Joint Public Hearing Prospect Village Project & DDA May 17, 2004 Page 3 a) Adopt Resolution No. RDA 04-01 accepting the Prospect Village Project Final Environmental Impact Report as certified by the City Council complete and adequate pursuant to the California Environmental Quality Act and adopting Findings of Fact, a Statement of Overriding Considerations, and Mitigation Monitoring Program for the Disposition and Development Agreement (the "DDA") between the Tustin Community Redevelopment Agency and Prospect Village, LP. b) Adopt Resolution No. RDA 04-02 approving the DDA 04-1 between the Agency and Prospect Village, LP, and authorize the Executive Director to take such actions and execute such documents and instruments, with such minor changes, additions, or deletions as may be approved by the City Attorney, as deemed necessary or desirable for implementation of the DDA. FISCAL IMPACT The associated applications were initiated by the applicant and all applicable fees have been paid the applicant. A fiscal analysis of the proposed DDA is provided in the report prepared pursuant to Health and Safety Code Section 33433 and attached as Exhibit A to Resolution No. 04-41. There will be no fiscal impact to the Agency for the construction of private improvements pursuant to the DDA (Attachment B - Disposition and Development Agreement 04-1). However, the DDA provides that the Developer will construct certain public improvements to be reimbursed by the City. The public improvement funds have been appropriated in the City's Capital Improvement Project (CIP) budget and would be expended independently to make the improvements that are associated with the overall streets cape improvement program for Old Town, as follows: . . $330,000 for the East Alley Improvements between Main Street and Third Street (CIP Project No. 7176); and, $550,000 for the Prospect Avenue Improvements between Main Street and Third Street (CIP Project No. 7177). BACKGROUND The proposed Prospect Village Project includes the development of a 1.036-acre site (the former location of the Utt Juice Company) at the northwest corner of Main Street and Prospect Avenue. The Site is owned by the Tustin Community Redevelopment Agency which acquired the property in 1998 through eminent domain for redevelopment purposes and the elimination of blight pursuant to a Resolution of Necessity adopted by the Agency in December 1997 (Resolution No. RDA 97-7). Joint City Council and Community Redevelopment Agency Report Joint Public Hearing Prospect Village Project & DDA May 17, 2004 Page 4 Since February 1998, Agency staff has marketed the Site through an extensive developer outreach and solicitation process. Throughout the solicitation process, prospective developers were informed of the City's desire to enhance the existing improvement on the site, particularly the facades of the buildings, if feasible, while providing for the construction of additional buildings on the property to achieve its highest and best use. During this six-year period Agency staff was unable to reach agreement with four separate developers, none of which would have preserved any portion of the existing buildings and all of which would have required substantial public subsidies. In June 2002, Pelican Center LLC (now Prospect Village, LP, a California Limited Partnership (the "Developer") submitted a development proposal to the Agency to construct an approximately 13,000 square foot retail commercial building and 12 live- work residential units. Subsequent to entering exclusive negotiations and additional design refinements, a revised development plan and project pro forma reflecting an approximately 9,300 square foot retail commercial building (with 8,589 leaseable square feet) and 12 live-work units was submitted. The revised proposal is reflected in the applications related to Zone Change 03-002, Tentative Tract Map 16481, Design Review 03-012, and the proposed DDA. Site and Surrounding Properties The Site is owned by the Tustin Community Redevelopment Agency and is bounded by Main Street on the south, Prospect Avenue on the east, Third Street on the north, and a public alley to the west. There are two existing buildings on the Site, located at 191 and 193-195 East Main Street, which have been largely vacant and in a dilapidated condition since the Utt Juice Company ceased operations in 1973. The two buildings are identified as being historically significant. The 193-195 building appears eligible for separate listing on the National Register of Historic Places and would by virtue of its separate eligibility be automatically eligible for listing on the California Register of Historical Resources. The 191 Main Street building would not be eligible for separate listing on the National Register but is presumed eligible for listing on the California Register due to its association with historically important persons and as a contributor to the Tustin Cultural Resources District. The remaining portions of the site are generally vacant, with the exception of two concrete pads, where previously demolished structures were located, and other miscellaneous debris. The Site is surrounded on three sides by other development, including the City's Main Street Water Facility to the east and office and retail uses across the alley to the west and across Main Street to the south. An existing vacant L-shaped lot is located across Joint City Council and Community Redevelopment Agency Report Joint Public Hearing Prospect Village Project & DDA May 17, 2004 Page 5 Third Street to the north that currently accommodates a Farmers Market that operates one (1) day per week (Wednesday) between 9:30 a.m. and 1 :00 p.m. Development Process and Public Noticing In late 2003, the development application was deemed substantially complete and a Draft Environmental Impact Report was prepared and circulated for public review from January 9, 2004, to February 23, 2004. A number of comments were received. Responses to all comments are contained in Volume 2 of the Prospect Village Final Environmental Impact Report, which was made available for review on April 16, 2004, ten (10) days prior to the Planning Commission public hearing. Public notices for the public hearings by the Planning Commission and City Council were published in the Tustin News on April 15, 2004, and posted on the property on April 15, 2004. Revised public notices for the joint public hearing of the Tustin City Council and Tustin Community Redevelopment Agency were published in the Tustin News on April 29, 2004, and May 6, 2004, and posted on the property on April 29, 2004. Public hearing notices were mailed to approximately 212 property owners within 300 feet of the project site and individuals on an interest list. Planning Commission Public Hearing and Actions On April 26, 2004, at the regularly scheduled meeting of the Tustin Planning Commission, the Commission conducted a public hearing and took public testimony and accepted one written comment letter regarding the proposed Prospect Village Project. Some speakers noted support for the project and some were desirous of adoption of some alternative with preservation of the buildings, particularly at 193 and 195 E. Main Street or at least preservation of the building façades. Some speakers noted Alternative 3 and Alternative 5 of the FEIR as the more favorable alternatives (Attachment C - Planning Commission Minutes and Comment Letter). Comments made at the Planning Commission meeting were addressed in Final Environmental Impact Report (FEIR) or focused on recommendations for a course of action (i.e., selection of an alternative). A few comments that required clarification at the meeting are noted and discussed below. One of the speakers questioned use of off-site parking to accommodate on-site parking requirements for the project. Staff responded that this option has been available since 1988 and utilized by a number of current business owners in Old Town Tustin such as businesses located at 425 EI Camino Real, 215 EI Camino Real, 335 South C Street, 301-307 EI Camino Real, 333 and 339 EL Camino Real, and 100 W. Main Street. Public parking spaces under license by the City are made available for the non- exclusive use by the business owners and visitors in the area. Joint City Council and Community Redevelopment Agency Report Joint Public Hearing Prospect Village Project & DDA May 17, 2004 Page 6 There was also a comment regarding a $355,000 public subsidy that is noted on Page 127 of Volume 2 of FEIR (Reponses to Public Comments), which refers to an amount originally requested by the developer. Staff had indicated in the written Response to Comments that the development pro forma was revised subsequently to increase the purchase price for the property as identified in the DDA. At the meeting, staff identified that the financial terms in the DDA require no public subsidy. Another comment was that the City had allowed the existing buildings to decline from an average to poor condition. As noted by staff at the Planning Commission meeting, the buildings have been vacant since 1973 and the previous owner had allowed the buildings to deteriorate significantly. Prior to the City's acquisition of the property, the buildings had numerous health, safety, and building code violations and nuisance conditions, which the property owner did not remedy. The City obtained a court order to seismically retrofit the buildings to secure the building to a basic standard of safety. The structural engineer's report prepared by Curry Price Court (Attachment D - Adaptive Reuse Study-Structural Engineering Report) identifies the condition of the structures to be relatively deteriorated. Following the public hearing, the Planning Commission approved the following: 1. Adopted (5-0 vote) Resolution No. 3910 certifying the Prospect Village Project Final Environmental Impact Report as complete and adequate pursuant to the California Environmental Quality Act and adopting a Statement of Overriding Considerations and Mitigation Monitoring Program for Zone Change 03-002, Design Review 03-012, Tentative Tract Map 16481, and Conditional Use Permit 03-012; 2. Adopted (5-0 vote) Resolution No. 3912 recommending that the City Council approve Zone Change 03-002 to change the zoning on the Site from Central Commercial and Parking Overlay (C2-P) to Planned Community (P-C) and recommending adoption of the Planned Community District Regulations for the Prospect Village Project; 3. Adopted (5-0 vote) Resolution No. 3912 recommending that the City Council approve Tentative Tract Map 16481 to subdivide the Site into thirteen (13) numbered lots and one (1) lettered lot for the purpose of developing a commercial building and twelve (12) live-work units within a planned unit development; 4. Adopted (4-1 vote) Resolution No. 3913 approving Design Review 03-012 for development of the Site with an approximately 9,300 square foot (8,589 square feet of leasable area) two-story commercial building and twelve (12) three-story Joint City Council and Community Redevelopment Agency Report Joint Public Hearing Prospect Village Project & DDA May 17, 2004 Page 7 live-work units, with a reduction of off-street parking requirements and the provision of off-site parking, and alcoholic beverage sales in conjunction with a future restaurant; 5. Adopted (5-0 vote) Resolution No. 3914 approving Conditional Use Permit 03- 012 for establishment of a future restaurant with alcoholic beverage sales in tenant space up to 3,000 square feet with 112 seats in the commercial building on Lot 1 of Tentative Tract Map 16481; and 6. Adopted (5-0 vote) Resolution No. 3915 finding the disposition of property by the Tustin Community Redevelopment Agency for the Prospect Village Project is in conformance with the Tustin General Plan. On May 3, 2004, at a regularly scheduled City Council meeting, the Final Actions of the Planning Commission were appealed to the City Council. In addition, three comments letters were submitted following the Planning Commission meeting (Attachment E - Comment Letters) that indicate support or opposition to the project or provide information about what other jurisdictions have done in their Old Town areas; none of the letters raise any new issues that have not been addressed. DISCUSSION Project Objectives The project site is located near the center of the Old Town commercial area. The Agency's goal for the Old Town commercial area is to create a sustainable and competitive 24-hour district that will serve a broad segment of the City's business and residential population. Development of a compact eight-block commercial-retail core at the heart of the Old Town commercial area would serve as the primary specialty retail area for the City. The project objectives are consistent with the recommendations in the "Visions of Old Town," a planning study that was prepared in 1991 and coordinated by the Regional/Urban Design Assistance Team (RIUDAT) through the American Institute of Architects (AlA). As described in the RIUDAT study, the commercial-retail core needs to be filled with new restaurants, retail stores, and offices that will introduce a mix of commercial activities which will be competitive with the surrounding strip commercial centers located along Newport Avenue. It is important to long-term economic viability of the Old Town commercial area to re-establish the area in the near future as the "town center" for the City of Tustin by intensifying private commercial retail development and providing a viable alternative to the traditional neighborhood strip centers and community shopping centers found on nearby Newport Avenue and other areas of the City. The project objectives were further defined as follows: Joint City Council and Community Redevelopment Agency Report Joint Public Hearing Prospect Village Project & DDA May 17, 2004 Page 8 . To develop the vacant and underutilized site within the next 2 to 3 years to capitalize on the current favorable private development financing conditions for mixed-use projects; To eliminate delay and uncertainties regarding future development of the site; To stimulate private investment and demonstrate economic viability in the Old Town commercial area. To increase the amount of specialty retailing and commercial development in the core of the Old Town commercial area in order to enhance its urban character and bolster the commercial area's revitalization and long-term economic viability; To expand the niche market character of the Old Town commercial area by providing a balanced and complementary mix of new retail and commercial uses; To increase the number of residential units in the Town Center Redevelopment Project Area, while reflecting a high-quality urban character; To develop ground floor specialty retailing configurations consistent with current market condition requirements; To provide a minimum 3,000 square foot high-quality restaurant along with outdoor patio dining to enliven the pedestrian environment along Main Street in the Old Town commercial area; To create a financially viable commercial mixed-used development with minimum public subsidy; To create construction jobs and permanent jobs in the Town Center Redevelopment Project Area; To increase the property tax increment and sales tax revenues in the Project Area, which will be earmarked for ongoing economic development activities in the Old Town commercial area including business retention and outreach programs, façade improvement programs, and community facility projects; and, To achieve the Old Town commercial area redevelopment goals and objectives of the City's General Plan and the Town Center Redevelopment Plan. . . . . . . . . . . . Project Description The proposed project is a 40,581 square foot mixed use development, which has been designed to enliven the pedestrian environment along Main Street by providing a balanced and complementary mix of specialty retailing and offices to accommodate a high level of commercial activity and urban vitality at the easterly gateway to the downtown area. To achieve this, the project includes construction of a new two-story, 9,300 square-foot commercial building with entrances off East Main Street ("Main Street Building") and access to three (3) on-site parking spaces from the public alley to the west. The first floor of the Main Street Building would accommodate up to a 3,000 square foot restaurant(s) with 112 seats and 593 square feet of outdoor dining space, and approximately 773 square feet of retail uses. The second floor would accommodate approximately 4,816 square feet of retail, service commercial, and office Joint City Council and Community Redevelopment Agency Report Joint Public Hearing Prospect Village Project & DDA May 17, 2004 Page 9 space. The Main Street Building would have a zero setback along Main Street and Prospect Avenue, a four foot setback on the public alley to the west of the site or Prospect Lane, and a 13 foot and four inch separation between the building and live/work units to the north. The project also includes development of twelve (12), three story (approximately 40 feet tall) detached live/work residential units with retail uses on the ground floor to assist in achieving the goal of creating a downtown specialty retail core in the Old Town commercial area. Six (6) of the twelve (12) units would face Prospect Avenue and six (6) units would face the east alley or Prospect Lane. Each of the Prospect Avenue units would have 913 square feet of ground floor retail space and a 2,126 square-foot two- story residence with two-bedrooms, two-bathrooms, and a two-car garage. The other six (6) three-story units facing the public alley to the west would have 431 square feet of ground floor retail or office space with a two-story, two-bedroom, two-bath, 1,862 square-foot residential unit above. The live/work units would be located on two sides of an interior auto court that provides vehicular access from the public alley to the garages tucked under each of the units. The live/work units would be privately owned and operated; however, a homeowners association would be responsible for landscape and common area maintenance including the automobile entry gate, private drive/interior auto court, and guest parking spaces. To ensure that the units are proprietor owner-occupied, the developer would be required to record individual deed restrictions for a minimum of ten (10) of the twelve (12) live/work units upon the initial sale of the units to prevent the sale of the ground floor retail or office uses separate from the residential living units above. In addition, a minimum of ten (10) of the twelve (12) live/work units would be restricted to owner/proprietor occupancy of the ground floor space based on the number of parking spaces available to serve the project. In other words, the resident would also be the operator of the business below unless additional parking can be provided within close proximity to the live/work unit. CITY COUNCIL ACTIONS The project site is located within the City's General Plan "Old Town Commercial" land use designation, Central Commercial and Parking Overlay (C-2P) zoning district, Cultural Resources Overlay districts, and Town Center Redevelopment Project Area. The following entitlements are required by City Council actions (and are discussed in more detail below): Certification of a Final Environmental Impact Report: The entitlement actions identified herein require environmental review under CEQA, the City of Tustin is the lead agency in the preparation of the EIR, and the City Council is the decision-making body for the Joint City Council and Community Redevelopment Agency Report Joint Public Hearing Prospect Village Project & DDA May 17, 2004 Page 10 entitlement actions and for certifying the Final EIR as complete and adequate under CEQA and adopting Findings of Fact, a Statement of Overriding Considerations, if deemed necessary, and a Mitigation Monitoring Program. General Plan Conformity Findinq: The DDA for disposition of property owned by the Tustin Community Redevelopment Agency would need to be found to be in conformance with the General Plan. Adoption of a Zone Chanqe and Planned Community District: To support the proposed project, the project site would need to be rezoned to a Planned Community District. The City Council is the decision-making body regarding the zone change. Subdivision of Land: To accommodate the proposed buildings and separate ownerships, the project site would need to be subdivided. The City Council is the decision-making body regarding the subdivision map. Approval of Site and Buildinq Desiqn. Reduced Parkinq, and Provision of Off-Site Parkinq: To obtain building permits, approval of the site and building design would be required. As part of the Design Approval, the applicant is requesting approval for reduced parking based upon a shared parking analysis and a license for off-site parking at the Main Street Water Facility. If reduced parking is approved, the applicant would be required to secure a license for off-site parking at the City's Main Street Water Facility prior to issuance of any permits. Conditional Use Permit: The applicant is requesting approval of a Conditional Use Permit to establish alcoholic beverage sales in conjunction with a future restaurant tenant. The Planning Commission is the decision-making body for this request. Issuance of a Certificate of Appropriateness: Since the project site is located within the Cultural Resources District, a Certificate of Appropriateness would be required for demolition of the existing historic buildings and new construction. If the project is approved, the Director of Community Development would issue a Certificate of Appropriateness concurrently with the building permits. Approval of Sale of Aqency Owned Property: Pursuant to Section 33433 of the California Redevelopment Law the City Council, after a public hearing, is required to approve an Agency sale of property acquired in whole or in part from tax increment monies. General Plan Conformity Since the site is located in the Town Center Redevelopment Project Area and owned by the Tustin Community Redevelopment Agency, a Disposition and Development Joint City Council and Community Redevelopment Agency Report Joint Public Hearing Prospect Village Project & DDA May 17, 2004 Page 11 Agreement (DDA) will be considered by the Tustin Community Redevelopment Agency. However, prior to adoption of the DDA, Section 65402(c) of the Government Code requires the local planning agency to find that disposition of property is in conformance with the General Plan. Since the Planning Commission's action on the general plan conformity finding was appealed, the City Council will need to consider this finding. Resolution No. 04-46 (Attachment H) contains findings to support a General Plan Conformity Finding. Zone Change The Tustin General Plan provides for residential uses to be permitted in the Old Town Commercial land use designation at the discretion of the City Council. To address the location, land use type, density, and building intensity standards for the proposed uses, a Planned Community zoning district may be adopted. As such, the site would be rezoned from "Central Commercial - Parking Overlay (C2-P)" to "Planned Community (PC)"; however, the site would continue to be located within and subject to the Cultural Resources Overlay District. In addition, specific zoning provisions would be adopted in conjunction with the zone change to be known as the "Prospect Village Planned Community District Regulations" (Attachment I - Ordinance No. 1284). In general, the Planned Community District Regulations would establish two planning areas to delineate the commercial area along Main Street and the live/work area to the north. In Planning Area A (the commercial area along Main Street), retail and restaurant uses would be permitted on the ground floor and retail and office uses would be permitted on the second floor. In Planning Area B (the residential area), single family residential uses would be permitted on the upper floors of the live/work units. The ground floor of live/work units facing Prospect Avenue would be permitted to have retail and service commercial uses whereas the ground floor of the live/work units that face the alley would be permitted to have retail, service commercial, or office uses. Although office uses are not permitted on the ground floor in the Old Town commercial core area, the lack of street frontage of the six units that face the alley may discourage retail uses. To ensure viability of the live/work concept, allowing a variety of retail, service, and office uses in these units would be appropriate. The district regulations also discuss the proposed development standards for both Planning Areas. Ordinance No. 1284 contains findings to support the zone change and shows the proposed change to the City's zoning map and contains the Prospect Village Planned Community District Regulations. Subdivision Tentative Tract Map 16481 would subdivide a 1.036 acre site into thirteen (13) numbered lots and one (1) lettered lot for the purpose of developing the commercial Joint City Council and Community Redevelopment Agency Report Joint Public Hearing Prospect Village Project & DDA May 17, 2004 Page 12 building and twelve (12) live/work units within a Planned Unit Development (Attachment F - Tentative Tract Map 16481). Lot 1 would accommodate the Main Street commercial building and building setbacks. Lots 2 through 13 would accommodate the building footprints of the live/work units. Lot A would accommodate common open space area, drive aisle, and open parking spaces supporting the live/work units. The developer will be responsible for construction of off-site improvements, which have been programmed in the City's CIP budget using Community Development Block Grant funds, including enhanced paving and landscape improvements in the public alley and half-width street improvements (paving, curbs and gutters) on Prospect Avenue between Main Street and Third Street. In addition, the developer will construct sidewalks on Prospect Avenue and Third Street with enriched paving and pedestrian bump-outs at Main Street and Third Street and landscaping consistent with the recently installed streetscape improvements in the Old Town commercial district. The developer will also be required to construct a new sidewalk on Main Street that is consistent with the Americans with Disabilities Act, which is needed to support pedestrian access to and from the new commercial building. In addition, an approximately 4,900 square foot portion of the alley to the west, which is currently an easement, will be granted in fee title to the City. To ensure operational standards that are consistent with the intent of the community, Conditions, Covenants, and Restrictions (CC&Rs) and homebuyer notifications would be required. Resolution No. 04-47 (Attachment J) includes findings to support approval of the map and conditions to ensure compliance with the Prospect Village Planned Community District Regulations, the FEIR Mitigation Monitoring Program, the Subdivision Map Act, and the City's Subdivision Ordinance. Design Review The project would provide a strong and consistent urban theme that is compatible with the surrounding buildings and would retain a pedestrian scale along the storefronts (Attachment F - Submitted Development Plans). The building improvements and tenant spaces would respond to the practical considerations of current retail, restaurant, Joint City Council and Community Redevelopment Agency Report Joint Public Hearing Prospect Village Project & DDA May 17, 2004 Page 13 and office market requirements. As noted above, a number of public improvements would be required to complete the Old Town streetscape. Arch itectu fe/La ndscapi ng The Main Street Building would be approximately 34 feet in height with brick clad on three sides and stucco on the rear. This height is generally consistent with other two- story buildings in the immediate vicinity. The building's design would include articulated cornices, divided pane windows, brick banding, and tile friezes to be compatible with adjacent buildings in the Old Town commercial area. The live/work units would range from thirty-six to thirty-nine feet in height and are designed to complement the adjacent buildings and the overall character of the Old Town Commercial area. The live-work units reflect an urban style with brick and stucco clad exteriors, varied roof lines, articulated cornices, and exterior banding. The ground floors would be characteristic of other retail store fronts in the area and would include plate glass windows and entries. The upper floors would be residential in architectural character with divided pane windows, balconies, and decks that are compatible with the surrounding buildings in Old Town. Specifications for the lighting fixtures and illumination throughout the project site would be reviewed at plan check and, as conditioned, would require that all lighting be directed downward to avoid light and glare on adjacent properties. Site Amenities Many of the buildings would have limited setbacks with limited landscaping, similar to other buildings within Old Town. Tenants would have the opportunity to set pots or planters in front of the buildings to provide greenery. In addition, the developer would be required to install street trees along the project perimeter. The refuse area for the Main Street commercial building would be located at the southwest corner of the building and accessible from the public alley. The live/work units would have individual trash service and would have approximately 100 square feet of storage area in the garages for both trash and general storage. An access gate would be installed near the intersection of the private drive and the public alley to limit entry into the private live/work area. A condition of approval would require the developer to submit detailed plans so that the Public Works Department can review the proposed stacking distance to ensure there will no impacts to circulation in the public alley. Joint City Council and Community Redevelopment Agency Report Joint Public Hearing Prospect Village Project & DDA May 17, 2004 Page 14 Parking Based on the proposed project land uses, ninety-two (92) parking spaces would be required if the requirements of the "Parking Overlay District (P)" were applied. This parking overlay district applies to most of the Old Town commercial area. However, since a comprehensive Planned Community District with unique operational characteristics is proposed to be established, a parking demand analysis was prepared to assess the actual parking needs for the project. The City retained Sasaki Transportation Services to evaluate the project's peak parking demand. As outlined in Appendix F of the Prospect Village Final Environmental Impact Report (Exhibit A of Attachment G), the Shared Parking Evaluation found the following: . The twenty-four (24) garage spaces and three (3) open off-street parking spaces would be adequate to serve the residential portions of the live/work units. This amount of parking is consistent with Tustin City Code requirements for multiple family residential projects. . The proposed mix of commercial uses (retail, office, and restaurant) would be conducive to a shared parking arrangement. According to the study, the peak parking demands for office, retail, and restaurant uses occur at different times of the day. For example, the office parking peaks occur during the day on week days, while the retail peak is on the weekend. Restaurants are typically busy on Friday and Saturday evenings when retail and office uses are not at their peaks. According to the Parking Study, the shared parking demand for the commercial portion of the Project was sixty-two (62) spaces, which would be satisfied by the use of fifty-nine (59) spaces at the City of Tustin Main Street Water facility ("Water Facility") parking lot and three (3) on-site spaces. The three (3) parking spaces provided on-site are immediately west of and adjacent to the E. Main Street building. To satisfy the shared use requirements, the developer must enter into an agreement with the City of Tustin for the non-exclusive use of fifty-nine (59) parking spaces in the public parking lot adjacent to the Main Street Water Facility. These parking facilities were constructed to provide public parking and support development in the area. A condition of approval would require the developer to obtain an Off-Site Parking Agreement from the City for the provision of fifty-nine (59) public parking spaces or an off-site equivalent prior to issuance of any permits. Resolution No. 04-48 (Attachment K) includes conditions to ensure compliance with the submitted plans, design review criteria, Prospect Village Planned Community District Regulations, and the FEIR Mitigation Monitoring Program. Joint City Council and Community Redevelopment Agency Report Joint Public Hearing Prospect Village Project & DDA May 17, 2004 Page 15 Conditional Use Permit The developer is requesting approval of alcoholic beverage sales in conjunction with a future restaurant tenant. The restaurant would be up to 3,000 square feet and include the outdoor patio in the Main Street commercial building. Resolution No. 04-49 (Attachment L) contains standard conditions of approval for alcoholic beverage sales. Once a tenant is selected, the applicant would be required to submit information demonstrating compliance with the conditional use permit or request a modification. Approval of Sale of Agency-Owned Property Since the site is located in the Town Center Redevelopment Project Area and owned by the Tustin Community Redevelopment Agency, a Disposition and Development Agreement will be considered by the Tustin Community Redevelopment Agency as a separate item. Health and Safety Code Section 33433 requires the legislative body (the Tustin City Council), after a public hearing, to approve an Agency sale of property that was acquired in whole or in part with tax increment moneys. Resolution No. 04-41 (Attachment M) includes findings pursuant to Section 33433 for consideration by the City Council. Environmental Analysis A Draft Environmental Impact Report (DEIR) was circulated for public review from January 9, 2004, to February 23, 2004. The DEIR and responses to all comments are contained in Volumes 1 and 2 of the Prospect Village Final Environmental Impact Report (Exhibit A of Attachment G), which was made available for review on April 16, 2004. The FEIR evaluated seven environmental issue areas including: aesthetics, air quality, cultural resources, hazards, land use, noise, and traffic. No significant impacts were found in the areas of aesthetics, air quality, or noise. Other potential impact categories related to hazards, short-term traffic impacts, and parking were found to be less than significant with the implementation of mitigation measures shown in Table ES-1 of the FEIR. Due to the proposed demolition of the existing historic buildings, which were built in 1914 and 1922, the project would result in significant and unavoidable impacts to cultural resources and land use. Although the following mitigation measure is proposed to lessen the impact of demolition, it will not reduce the impacts of demolition to a less than significant level: . Prior to the issuance of a demolition permit, documentation of the buildings to be removed shall be undertaken by the developer to be approved by the City utilizing the standards of the Historic American Building Survey (HABS), including photo- Joint City Council and Community Redevelopment Agency Report Joint Public Hearing Prospect Village Project & DDA May 17, 2004 Page 16 documentation and measured drawings of the East Main and Prospect Avenue elevations. These items, together with the Historical Resource Technical Report, shall be added to the Tustin Area Historical Society Museum. The FEIR also discusses alternatives to the project as required by CEQA and provides independent analyses of the project alternatives based on technical studies regarding the existing condition of the buildings and their potential for adaptive reuse. However, it should be noted that the developer has not indicated that any of the alternatives would be feasible from a business perspective and the Disposition and Development Agreement focuses solely on the proposed project. In addition to a "No Project Alternative," these alternatives are as follows: 1. Full Reuse Alternative: The Full Reuse Alternative entails rehabilitation and reuse of the existing Utt Juice buildings in accordance with the Secretary's Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring, and Reconstructing Historic Buildings, 1995, Weeks and Grimmer ("Secretary's Standards and Guidelines"). This Alternative also entails new construction of a retail building addition on the vacant pad area immediately west of the 191 Main Street building ("191 Building"). The remaining northerly portion of the site would be developed with ten (10) live/work units. 2. Partial Reuse Alternative: This Alternative would rehabilitate and reuse the 191 Building and partially rehabilitate and reuse the 193, 195 Building (to a depth of sixty) in accordance with the Secretary's Standards and Guidelines. This Alternative also entails construction of a new two-story building to a depth on the pad area immediately west of the 191 Building. The remaining northerly portion of the site would be developed as ten (10) residential live/work units. 3. Partial Reuse (193, 195 Building Only) Alternative: This Alternative would partially rehabilitate and reuse the front forty-five feet of the 193, 195 Buildings in accordance with the Secretary's Standards and Guidelines. The 191 Building would be demolished. This Alternative also entails construction of a new two- story retail building on the remaining pad area west of the 193, 195 Building. Similar to the proposed project, the remaining northerly portion of the site would be developed with twelve (12) live/work units. 4. Full Reuse (Existing Zoning) Alternative: The Full Reuse Under Existing Zoning Alternative would rehabilitate and reuse the existing structures in accordance with the Secretary's Standards and Guidelines. The alternative also entails construction of a new abutting 2,200 square foot single-story retail building on the vacant site immediately west of the 191 Building. The remaining northerly Joint City Council and Community Redevelopment Agency Report Joint Public Hearing Prospect Village Project & DDA May 17, 2004 Page 17 portion of the site would be developed with a two-story retail and professional office building. 5. Façade Reuse Alternative: This alternative entails rehabilitation and reuse of all or a portion of the façade of the 193, 195 Building as may be technically feasible, which would be incorporated into a new two-story Main Street Building. All other project components would be similar to the proposed project. If the City Council is inclined to certify the Final Environmental Impact Report for the purpose of approving the proposed project, Findings of Fact, a Statement of Overriding Considerations, and a Mitigation Monitoring Program will need to be adopted. The Statement of Overriding Considerations must identify the economic, legal, social, or technological benefits of the project that outweigh the project's significant and unavoidable environmental impacts. Resolution No. 04-45 (Attachment G) contains required CEQA findings, a Statement of Overriding Considerations, and a Mitigation Monitoring Program for the City Council's consideration. REDEVELOPMENT AGENCY ACTIONS As identified above, the project site is located within the City's General Plan "Old Town Commercial" land use designation, Central Commercial and Parking Overlay (C-2P) zoning district, Cultural Resources Overlay districts, and Town Center Redevelopment Project Area. The following are required Redevelopment Agency actions: Acceptance of Final Environmental Impact Report: The proposed DDA is a "project" as defined under CEQA subject to environmental review and certification by Redevelopment Agency as a responsible agency. The Redevelopment Agency may rely on the FEIR certified by the City Council in approving the DDA. The Agency's CEQA Findings and Statement of Overriding Considerations for its actions will be approved, if deemed necessary. Disposition and Development Aqreement: Since the site is located in the Town Center Redevelopment Project Area and owned by the Tustin Community Redevelopment Agency, a Disposition and Development Agreement (DDA) will be considered by the Tustin Community Redevelopment Agency. Disposition and Development Agreement Redevelopment Agency Staff have negotiated the terms and conditions of a proposed Disposition and Development Agreement 04-1 between the Redevelopment Agency and Prospect Village LP, which requires the development of the Site in accordance with the land use approvals identified above. The proposed DDA provides for the payment Joint City Council and Community Redevelopment Agency Report Joint Public Hearing Prospect Village Project & DDA May 17, 2004 Page 18 of a purchase price of $855,000 by the Developer to the Agency. The purchase price to be paid is greater than the appraised fair market value and the reuse value of the land and is equal to the Agency's cost of acquiring the property, thus not requiring any public subsidy for the construction of the private improvements on the Site. The proposed DDA requires the developer to convey a dedication in fee for the east public alley and to construct certain public improvements for the east public alley between Main Street and Third Street and for Prospect Avenue between Main Street and Third Street. The public improvements would be reimbursed by the City in an amount not to exceed $330,000 for the cost of the east alley improvements and $550,000 for the Prospect Avenue improvements as identified in the DDA. Any costs incurred by the developer in excess of the above amounts will be borne by the developer. The public improvement funding amounts have been appropriated in the FY 03-04 Capital Improvement Program for CIP Project Nos. 7176 and 7177 respectively. The DDA requires the Developer to secure all required land use entitlement from the Tustin Planning Commission and City Council. The site improvements will be constructed in compliance with all provisions of the DDA and with all "Conditions of Approval" stipulated by the Tustin Planning Commission, the City Council, and other applicable governmental agencies having jurisdiction. Except for the City's reimbursement for the public improvements discussed above, the DDA requires the Developer to obtain private funds necessary for all project costs, including but not limited to, the acquisition of the site, construction of all on-site improvements and all related private improvements as identified in the DDA related to developing the site. RDA Resolution No. 04-02 (Attachment 0) contains required findings for the DDA for the Agency's consideration. Environmental Analysis A Draft Environmental Impact Report (DEIR) was circulated for public review from January 9, 2004, to February 23, 2004, and is discussed in the City Council Actions section above. Responses to all comments are contained in Volume 2 of the Prospect Village Final Environmental Impact Report, which was made available for review on April 16, 2004. If the Agency is inclined to accept the Final Environmental Impact Report certified by the City Council for the purpose of approving the proposed DDA, Findings, a Statement of Overriding Considerations, and a Mitigation Monitoring Program will need to be adopted. The Statement of Overriding Considerations must identify the economic, legal, social, or technological benefits of the project that outweigh the project's significant and unavoidable environmental impacts. Resolution No. RDA 04-01 (Attachment N) Joint City Council and Community Redevelopment Agency Report Joint Public Hearing Prospect Village Project & DDA . May 17,2004 Page 19 contains required CEQA findings, a Statement of Overriding Considerations, and a Mitigation Monitoring Program for the Agency's consideration. CONCLUSION The proposed project is consistent with the Implementation Plan's five year plan for redevelopment activities in the Town Center Redevelopment Project Area. The proposed project will remove a blighting influence and contribute to economic revitalization in the Project Area by removing vacant deteriorating buildings and developing a mixed-use retail, office and live-work project consisting of a 9,300 square foot commercial building and 12 live-work residential units. Attached are the proposed Disposition and Development Agreement, the Section 33433 Summary Report, and the proposed resolutions and ordinances. By adopting the proposed resolutions and ordinances, the City Council and Agency will approve the proposed Prospect Village Project. 1<.oA-t ~Fl hvt:- /,Ñ'" Elizabeth A. Binsack U Director of Community Development See Attachment to City Council Agenda Report for Joint Public Hearing on Prospect Village Project & DDA dated May 17, 2004, as follows: Attachments: A: B: C: D: E: F: G: Location Map Disposition and Development Agreement Minutes of April 26, 2004, Planning Commission Meeting and Submitted Comment Letter Adaptive Reuse Study - Structural Engineering Report Comment Letters Submitted after Planning Commission Meeting Tentative Tract Map 16481 and Development Plans Resolution No. 04-45 Exhibit A: Final Environmental Impact Report Exhibit B: Findings of Fact/Statement of Overriding Considerations Exhibit C: Mitigation Monitoring Program Resolution No. 04-46 Ordinance No. 1284 Exhibit A: Zoning Map Amendment Exhibit B: Planned Community District Regulations H: I: Joint City Council and Community Redevelopment Agency Report Joint Public Hearing Prospect Village Project & DDA May 17, 2004 Page 20 J: K: L: M: N: 0: Resolution No. 04-47 Resolution No. 04-48 Resolution No. 04-49 Resolution No. 04-41 Exhibit A: Fair Reuse Analysis and Summary Report RDA Resolution No. RDA 04-01 Exhibit A: Final Environmental Impact Report Exhibit B: Findings of Fact/Statement of Overriding Considerations Exhibit C: Mitigation Monitoring Program RDA Resolution No. RDA 04-02 RDA reportlMay 17 2004 Joint Pub Hrg.doc